Premier proposes listing ‘T-shares’

Premier Sean Chen (陳冲) yesterday proposed an idea modeled on the H-shares listed on the Hong Kong Stock Exchange, saying that Taiwan could consider allowing Taiwanese companies registered in China to have shares traded on the Taiwan Stock Exchange.

In a statement issued by the Executive Yuan, Chen said he has asked the Financial Supervisory Commission to study the possibility of listing “T-shares” on Taiwan Stock Exchange.

Following President Ma Ying-jeou’s (馬英九) National Day Speech on Wednesday, in which he called for the elimination of foreign investment restrictions, Chen at the weekly Cabinet meeting yesterday urged Cabinet officials to adopt an open-minded perspective and consider an influx of foreign capital, “not only in manufacturing, but also in the service sector, especially financial service industry.”

Chen pledged to propose policies to significantly relax rules on investment by foreign investors in local industries. When consideration is given both to national security and the national interest, foreign investment would be allowed to be made in industries in general cases, while regulation of foreign investments would only be imposed in specific cases, he said.

The Cabinet will continue to review the regulations of the labor market to strike a balance between laborers’ rights and overseas investments to ensure that new investments would continue to be made to increase job opportunities for local laborers, Chen added.

In related news, Minister of Economic Affairs Shih Yen-hsiang (施顏祥) said yesterday the ministry is moving toward further easing the restrictions on foreign investments, but a date has not been set for the next stage of opening to Chinese investment.

“The ministry is still seeking the views of the relevant agencies and we expect to move in the direction of further liberalization,” Shih said.

Local media reported that China’s flat panel and semiconductor sectors will be included in the next stage of investment liberalization, following Ma’s National Day address on Wednesday.

Shih yesterday said the current regulations that stipulate prior approval for foreign and overseas Chinese investments would be changed to allow investors to inform the authorities afterward.

He said the question of whether to allow foreign investment in key technology sectors, such as the flat panel and semiconductor, industries is still being considered.

The major consideration will be the interests of the country and the industries, he said, adding that a review team would also look at which industrial sectors should be opened to foreign investment.

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